Purchasing managers are constantly walking a tightrope. Do you face your fears head-on and order plenty of stock to meet customer demand? Or do you risk overordering and find yourself drowning in excess inventory, with valuable cash and space tied up in products you can’t move?
It’s a tricky balancing act, and manual stock ordering often feels like trying to juggle with one hand tied behind your back. One moment you’re scrambling because you’ve run out of essential items, and the next, you’re staring at a mountain of overstock, draining resources and creating waste.
Put simply, managing stock levels is one of the biggest challenges for any business. But, thanks to advances in technology, it doesn’t have to be this way.
The right Warehouse Management System (WMS) can take the guesswork out of stock orders, offering automated solutions that keep your business running smoothly. But what features should you be looking for to take the guesswork out of stock orders?
The Problem with Manual Stock Ordering: Why Automation Matters
You can be the best purchaser in the world, but you’re still human.
Any way you look at it, manual stock ordering is prone to human error, and it’s a case of when, not if, it will happen. Whether it’s forgetting to reorder a critical product or overestimating demand, these mistakes can be costly, disrupting your supply chain, affecting customer satisfaction, and ultimately, hurting your bottom line.
Moreover, managing stock manually is time-consuming and can distract you from focusing on other important areas of your business.
Automation matters because it eliminates these errors. It ensures that you always have the right amount of stock on hand, without the risks associated with human oversight. An effective WMS will transform the way you manage inventory by making the ordering process seamless and efficient.
How to Avoid Stockouts with Automated Reordering
Stockouts can be disastrous, leading to lost sales and unhappy customers. A good WMS helps you avoid this by predicting when you’ll need to reorder stock based on historical data and current trends. The system should also understand your business’s unique needs, including the minimum and maximum stock levels required for different products.
One of the most valuable features of an advanced WMS is its ability to factor in supplier lead times and delivery schedules. Different suppliers have different timelines, and some only deliver on certain days of the week. A WMS that understands these parameters can schedule your orders accordingly.
For instance, if a supplier requires a two-week lead time and only delivers on Wednesdays, a capable WMS will notify you in advance, ensuring that your order is placed in time to meet the next available delivery slot. This proactive approach means you’re never caught off guard by unexpected demand.
How the Right WMS Predicts When to Reorder Stock
The best WMS solutions use sophisticated algorithms to forecast demand and determine the best time to reorder stock. They consider various factors, such as historical sales data, seasonal trends, and upcoming promotions, to accurately predict future demand.
However, your business is unique, and there isn’t another one like it. There isn’t a one-size-fits-all approach to forecasting, so your WMS should be fully customisable, allowing you to set specific parameters for each product category.
You should be able to classify products into groups and set each one to have different reorder thresholds. This ensures that your inventory is tailored to your business needs, preventing unnecessary stock build-up or shortages.
The Role of Granular Data in Making Informed Purchasing Decisions
A high-quality WMS doesn’t just automate purchasing; it also provides granular data to help you make informed decisions. You should be able to review purchasing activity by supplier on a daily, weekly, or monthly basis, giving you insights into your ordering patterns. This data allows you to adjust your purchasing strategy based on real-time information, ensuring that your stock levels are always in line with demand.
By having access to detailed data, you can identify trends, assess supplier performance, and refine your purchasing process. This level of control ensures that you’re not just reacting to supply chain challenges but proactively managing them.
Introducing the Buyer’s Console: A Feature of Minster Edge WMS
If your current WMS doesn’t offer these capabilities, it might be time to consider an upgrade. The Buyer’s Console, a feature of the Minster Edge WMS, is designed to provide all the functionalities we’ve discussed and more.
The Buyer’s Console analyses your current stock levels, sales forecasts, and supplier parameters to automatically trigger purchase orders. It gives you full visibility into your inventory, factoring in both predicted and outstanding orders.
For instance, if you have 1,000 items in stock but 900 are already committed to customer orders, the console recognises that you effectively have only 100 items available. This accurate view of your inventory is crucial for making informed purchasing decisions.
Implementation Support: Streamlining Your Processes with the Buyer’s Console
Implementing a new system can feel daunting, especially if your current processes have been cobbled together over time.
Minster Edge WMS is designed to make this transition as smooth as possible, offering a range of implementation options tailored to your needs. Whether you prefer self-implementation, a hybrid approach, or a fully supported setup, we’ve got you covered.
For businesses that have been managing inventory with less-than-ideal processes, the Buyer’s Console can help untangle the complexity and put everything in order, ready for growth. Our team is here to guide you through each step, ensuring that your purchasing workflows are optimised and aligned with your business goals.
Get in touch today for a chat about how Minster Edge WMS and the Buyer’s Console can help your business reach its future goals.
